NeurogesX 8K Launching a New Approach to Pain Management | NGSX 14 Jan 10

Launching a New Approach to Pain Management

J P Morgan

Annual

Healthcare

Conference

January 14, 2010

Exhibit 99.1

Forward Looking Statements

The

Safe

Harbor

Statement

Under

the

Private

Securities

Litigation

Reform Act of 1995:

Except for the historical information herein, the matters discussed in this

presentation include forward-looking statements and risks and uncertainties. Examples of

such forward looking statements, include but are not limited to statements regarding: the

timing

launch

and

commercialization

Qutenza

the

and

EU;

market

acceptance

of,

and

demand

for,

NeurogesX’

products;

strategies

and

expectations

regarding

reimbursement of Qutenza; obtaining and maintaining regulatory approval; sufficiency of

cash

resources;

potential

future

payments

from

Astellas

pursuant

our

collaboration

agreements;

and

development

activities

for

NeurogesX’

products

including

Qutenza

and

NGX-1998.

The forward-looking statements are based on management’s current

expectations and are subject to risks and uncertainties that could cause actual results to

differ materially. Factors that may affect the outcome of forward-looking statements are

explained in the risks factors section of our filings with SEC, including our Form 10-K for

the 2008 fiscal year which was filed with the SEC on March 26, 2009 and our Form 10-Q

for the third quarter of 2009, which was filed on November 9, 2009.

NeurogesX

–

Pain Management Focus

•

Differentiated lead product

•

Locally-acting analgesic in dermal delivery system

•

Single

treatment

–

weeks

pain

reduction

•

EU Approved (May 2009)

•

US Approved (November 2009)

Product Launch

Strategy

Broad Pain

Management Pipeline

Proven Management

Track Record

•

US: 1H 2010 –

NGSX sales force

•

EU:

2010

–

Astellas

Pharma

Europe

•

Improved

capsaicin

delivery

model

–

NGX-1998

•

Multiple early-stage pain prodrug

candidates

•

Drug development, regulatory and commercialization

•

Results-oriented

Partnering to build

Qutenza

Franchise

•

Eastern

Europe,

Middle

East,

Africa

–

Astellas

•

ROW

–

open

for

partnering

Why NeurogesX

•

Neuropathic pain –

a large, unsatisfied market

•

Novel product concept

–

One treatment, up to 12 weeks of pain reduction

–

Treats the site of pain

•

Approved in US and EU

–

Planned launch in first half of 2010

•

Experienced management

–

Commercial, manufacturing, clinical, regulatory

•

Strong history of performance

•

Financially well positioned

2009 in Review –

Putting NGSX on the Map

•

FDA approval, November 2009

–

Management of pain associated with PHN

–

Single administration, up to 12 weeks of reduced pain

–

No contraindications/no REMS

–

Orphan Designation

•

EU Marketing Application Approved May 2009

–

Peripheral

neuropathic

pain,

nondiabetic

adults,

alone

combination with other medicinal products for pain

–

Approved in all 27 EU member states

•

Ex-US Commercialization Agreement with Astellas,

June 2009

Qutenza

EU Commercial Partnership

•

Astellas licensed Qutenza

commercialization rights

–

Countries in Europe, Middle East and Africa

–

Covers EU development, including post-marketing commitments

•

Economics for NeurogesX

–

EUR 30 MM (~$42 MM) upfront for Qutenza

–

EUR 5 MM (~$7 MM) upfront for NGX-1998 option/development

–

Up to EUR 70 MM in additional milestone/NGX-1998

option payments

–

Royalties on sales –

high teens to mid twenties

•

Option to license NGX-1998

–

Up-front payments to accelerate development

–

Opportunity to share late-stage development costs upon opt-in

Pathophysiology

of Postherpetic

Neuralgia

•

Reactivation of varicella

zoster virus

(chicken pox virus) which lies

dormant for many years in sensory

neurons

•

Virus reactivates with age or

immunocompromised

states,

resulting in painful skin eruption (i.e.,

herpes zoster or shingles)

•

Acute shingles rash heals in about 2

to 4 weeks and pain usually subsides

•

Despite healing of rash, for 10 to

20% of shingles patients the pain

persists for months to years; this

condition is known as postherpetic

neuralgia (PHN)

Treatment Procedure

•

Identify painful area

•

Apply topical anesthetic

•

Apply Qutenza

patch

–

Cut to conform to painful area

–

Apply 30 or

60 minutes

dependent on

indication/location of pain

–

Remove

–

Clean area with proprietary gel

Market Research by NeurogesX

•

Qualitative (US/EU)

•

Qualitative/Quantitative

•

Payer Qualitative

•

Patient Qualitative

•

Message Testing

•

Concept

•

Qualitative/Quantitative

•

Pricing US

Q26. What advantages does this product have over currently available treatments for moderate to

severe neuropathic pain? (Check all that apply)

Physician

Survey

Qutenza

Attributes

Source: 2007 NeurogesX quantitative market research (n=305).

57%

67%

69%

71%

76%

79%

83%

Rapid onset

Can use in combination therapy

No / low systemic side effects

Good safety profile

Non-sedating

Site specific

Three

-month duration of action

Product X Advantages

Favorable Physician Consideration as

First-Line Therapy

SOURCE: 2007 NeurogesX quantitative market research (n=208)

% PHN Patients treated

for First-Line Therapy

Percentage Total

(n =208)

Before Profile

After Profile

Change

25.4

Gabapentin

25.1

17.8

-7.3

Pregabalin

19.5

14.9

-4.6

Duloxetine

11.8

8.4

-3.4

Lidocaine

patch 5%

9.1

6.1

-3.0

Other

34.5

27.4

-7.1

Q31. Thinking about first-line agents

for chronic pain therapy excluding breakthrough or immediate pain

relief,

how

you

anticipate

you

will

prescribe

neuropathic

pain

agents

for

PHN

patients

whom

you

initiate

treatment, once Product X is introduced?

Quantitative Market Research Participants

Physician Type

Number of Participants

Pain Management (PMD)

Anesthesiology Pain Management (APM)

Primary Care Physician (PCP)

Physical Medicine & Rehabilitation (PM&R)

Neurologists

Infectious Disease

Total

300

Source: 2009 NeurogesX Quantitative Market Study (n=300)

Number of Patients Treated

typical

month,

how

many

patients

you

treat?

PHN

PDN

HIV

Chemo

Induced

Post

Surgical

Pain Specialist

Other Specialists

PCP

Source: 2009 NeurogesX Quantitative Market Study (n=300)

Patients Controlled, Uncontrolled and Naive

<65

65+

Pain

Specialist

Other

Specialists

PCP

Controlled

Uncontrolled

Naïve

Source: 2009 NeurogesX Quantitative Market Study (n=300)

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pain Specialists

Other Specialists

PCPs

Very Favorable

Favorable

Neutral

Unfavorable

Very Unfavorable

Overall

Impression

Qutenza

Please

rate

your

overall

impression

Product

scale

Source: 2009 NeurogesX Quantitative Market Study (n=300)

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pain

Specialists

PCPs

Others

Pain

Specialists

PCPs

Others

Pain

Specialists

PCPs

Others

Very Likely

Likely

Unlikely

Very Unlikely

Willingness to

Prescribe

Qutenza

for

PHN

First Line Agent

Second Line Agent

Combination Agent

Likelihood of Prescribing Product X as…

Source: 2009 NeurogesX Quantitative Market Study (n=300)

Qutenza

Usage

–

Office

Versus

Referrals Out

Do you think you would treat patients with Product X

yourself or would you refer patients to a pain specialist or

other physician?

n=300

90.8%

81.1%

83.1%

9.2%

18.9%

16.9%

20%

40%

60%

80%

100%

Pain Specialists

PCPs

Others

Specialty

Treat Patients Myself

Refer Patients to Another Physician

Source: 2009 NeurogesX Quantitative Market Study (n=300)

Establish

Qutenza

the

differentiated

treatment for PHN that delivers efficacy

with

tolerability

through

single

application

that provides 3 months of pain relief

Motivate and enable patients to

access

Qutenza

Minimize procedural challenges so that

decisions

are

based

safety

and

efficacy

Develop organizational readiness to

execute launch and carry out the

brand vision

Revolutionize the

treatment of PHN by

establishing

Qutenza

the only therapy that

maximizes efficacy, safety

and duration of action

Qutenza

Launch

Brand Vision

Launch Imperatives

Qutenza

Total Office Call

Nurse

Educators

Pain Specialist

Office

Physician

Qutenza

Reimbursement

Hotline

Qutenza

Specialty

Distribution

Sales Force

RRM

Training

Three Regions

Launch Strategy

•

MDs Reached

•

MDs trained

•

MDs converted to

treating MDs

Then move to next Phase

Project Team Leader (PTL)

Commercial

Operations

Marketing

Sales

Medical

Affairs

Medical

Information

Drug Safety/

Pharmacovigilance

Reimbursement

Regulatory

Manufacturing

Support Services

Finance

Legal

Quality Assurance

Project Manager (PM)

Distribution

Managing internally –

outsourcing many operational elements

Toll-free #

Launch Team in Place

Specialty Distribution Channel

Hospital

Specialty Hospital

Distribution

Medical Benefit

“Buy and Bill”

Specialty Distributors

Pharmacy Benefit

“Assignment of

Benefit”

Specialty Pharmacies

Reimbursement

Strategies

Coverage:

Secure Coverage as a Physician-administered Product

Coding:

Obtain Codes Needed to Support Coverage as a Physician-

administered Product

Billing:

Minimize

Physicians’

Billing-related

Barriers

use

for

QUTENZA

NeurogesX is Seeking Local Coverage

Determinations by MAC Medical Directors

Ultimate Decision

Makers:

Contractor (MAC)

Medical Directors

Patients

Influencers

* KOL = Key Opinion Leaders

KOLs*

/Societies

CACs

Meet with contractors

prior to launch to

introduce Qutenza

Attend CAC and

pre-CAC meetings

Develop relationships

with KOLs

and CACs

build support for Part B

coverage

Develop patient

advocates,

demonstrating need for

physician administration

Product Coding Strategy

•

Applied for a unique J-code to facilitate Part B / medical

benefit reimbursement (submitted Dec. 2009)

•

Apply

for

C-code

facilitate

‘pass-through’

payment

HOPD

•

Support use of a miscellaneous drug code (J3490), pending

permanent J-code issuance

•

Build private payer relationships to enhance likelihood of

issuance of temporary Q-code or private payer S-code

Procedure Code Strategy

*Assumes existing codes are not appropriate or do not provide adequate reimbursement.

•

Determine if payers favor any existing CPT code(s)

•

Request a temporary G-code for administration of

Qutenza

•

Pursue a new CPT code*

•

Be prepared to navigate use of miscellaneous code at

launch*

Qutenza

–

Protected Franchise

•

Issued Patents cover Qutenza

through 2016

•

Patent term extension filed –

through 2021

•

Orphan designation –

7 year market exclusivity

•

NCE designation –

5 year data exclusivity

Preclinical

Phase 1

Phase 2

Phase 3

Marketing

Application

Regulatory

Approval

Marketed

Product Pipeline

Opioid

Prodrug

NGX-6052

Acetaminophen Prodrugs

NGX-5752

NGX-9674

NGX-1576

Qutenza

: Management of PHN (US)

Qutenza

: HIV-DSP

Qutenza

: PDN

NGX-1998

Qutenza

: Peripheral Neuropathic Pain in Non-Diabetic Adults (EU)

Prodrug

Partnering Opportunities

Astellas 1H

2010 launch

Preparing to enter Phase 2

NGSX 1H

2010 launch

NGX-1998 Product Target Profile

•

Liquid formulation, prescription strength capsaicin

–

More versatile delivery model

–

Target application time <15 minutes

–

Expand opportunity to physician office setting

•

Three Phase 1 studies completed

•

Development strategy being refined

–

Resume development in 2010

Financial Summary

•

$57 M cash (9/30/09)

–

Runway to support US commercial launch through 2010

–

Evaluating additional funding strategies

•

Conservative cash management focused on priorities

–

Spend will increase in coming quarters to support launch

–

Resumption of NGX-1998 development in 2010

•

2010 Guidance and performance metrics

–

More to come as we approach launch

1H09

MAA Decision for Qutenza

(Approved)

1H09

EU Commercial Partnership

2H09

PDUFA for Qutenza

(PHN)

1H10

Qutenza

EU Launch (Astellas TBD)

1H10

Qutenza

US Launch

2H10

Resume NGX-1998 development program

2009 –

2010 Milestones

NASDAQ: NGSX

NeurogesX (NGSX) Inactive 8-KLaunching a New Approach to Pain Management